According to the International Monetary Fund, Georgia’s growth is expected to lower to around 3 percent in 2022, but it expects growth to pick up in 2023 and other key indicators to strengthen as well.

“Georgia’s economy was enjoying a strong recovery from the COVID-19 pandemic—growth reached 10.4 percent in 2021—before the Russian invasion of Ukraine. Spillovers from the war and sanctions are expected to lower Georgia’s growth to around 3 percent in 2022, raise inflation, and widen the current account deficit. The outlook is subject to a higher-than-usual level of uncertainty. Georgia’s economy has proven resilient in the past, and with the support of policies under the authorities’ program, we expect growth to pick up in 2023 and other key indicators to strengthen as well.

The authorities’ program aims to maintain and further entrench macroeconomic stability in the context of back-to-back shocks from the pandemic and the war in Ukraine, strengthen medium-term growth, and enhance economic resilience”, said IMF team leader James John.

An International Monetary Fund team led by Mr. James John held virtual meetings with Georgian officials between November 18, 2021 and March 31, 2022 to discuss a three-year economic program that could be supported by the IMF under a Stand-By Arrangement (SBA).

During the visit, the team met with Governor of the National Bank of Georgia Mr. Gvenetadze, Minister of Finance Mr. Khutsishvili, Minister of Economy and Sustainable Development Mr. Davitashvili and his predecessor Ms. Turnava, and other senior government officials, as well as with representatives of Georgia’s international development partners, civil society, and the banking and business communities.

The IMF team has reached a staff-level agreement with the Georgian authorities on a three-year Stand-by Arrangement (SBA) in the amount of about $289 million.